FY2025 INTERIM PRESENTATION
ANALYST BRIEFING
28 February 2025
W E C R E AT E , W E A R E A R T I S A N S , W E A R E C S V
STRATEGIC DIRECTION
SUSTAINABLE BUSINESS | CASH FLOW |
FOCUS | PRIORITIZATION |
PRIORITIZE ON REDUCING INDEBTEDNESS
2
SEVEN MEASURES TO REDUCE INDEBTEDNESS
BUSINESS | FINANCIAL | |||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | ||
RESILIENT DP | NCD | FARMLAND | IP STRONG AND | CAPEX & OPEX | TEMPORARY | TREASURY | ||
MOMENTUM | cvcvccvcvcvcv | OPPORTUNITIES | GROWING | OPTIMIZATION | DIVIDEND HALT | MANAGEMENT | ||
On the back of | Progress to | Progress to unlock | Increasing | Significantly lower | Improve financial | Ongoing | ||
premium brands | accelerate | value | recurring profits | in 1HFY25 | flexibility | refinancing | ||
deleveraging | discussions | |||||||
8 | 13 | |||||||
FY24A | FY25E |
- CAPEX - 35%YoY
- G&A - 9%YoY
3
SECTION ONE
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
NAVIGATING THROUGH A CHALLENGING ENVIRONMENT
Core Operating Profit
Segment Results
Loss Attributable To Shareholders
HK$4.4B
-18% YoY
HK$4.2B
-11% YoY
IP | K11 |
+7%(1) YoY | +5% YoY (2) |
HK$6.6B
One-off losses
IP Revaluation | DP Impairment | Others |
HK$1.6B | HK$3.4B | HK$1.0B |
G&A
CAPEX
Gross Debt Reduction
HK$1.8B
-9% YoY
HK$4.9B
-35% YoY
HK$5.1B | HK$11.4B |
-3% vs Jun 24 | -7% vs Dec 23 |
Note 1: Excluding disposed properties
Note 2: Excluding D Park contribution for both periods | 5 |
FINANCIAL HIGHLIGHTS
PRE-FINANCING CASH FLOW CLOSE TO BREAKEVEN
Increased focus on operating cash flow with a priority on deleveraging
HK$b
Operation
(-4.9)
Deleveraging | Cash | ||||
Total Debt | Total Perp | ||||
-5.1 | |||||
-0.9 | Total Cash | ||||
151.6 | |||||
146.5 | |||||
36.3 | 35.4 | ||||
28.0 | 21.9 | ||||
Jun | Dec | Jun | Dec | Jun | Dec |
2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
9.6
(-3.9) | Close to | ||||||
(-1.2) | |||||||
breakeven | 3.1 | ||||||
(-0.9) | |||||||
(-0.2) |
(-7.8)
(-6.1)
Net Operating | Capex | Net Interest | Distribution to | Pre- | Bond | Bond and Perp | Net Loan | Net Cash |
Cash Flow | Payment | Perps | Financing | Issuance | Buyback | Repayment | Movement | |
including NCD (1) | Cash Flow | |||||||
Cash inflow or net cash inflow | Pre-Financing Cash Flow | Financing Cash | ||||||
Cash outflow | (including interest and perp distribution) | Flow |
Note: 1. Net operating cash flow based on direct method, including but not limited to net cash flow from DP and IP businesses, NCD, tax expense, financing costs and G&A expenses etc. | 6 |
FINANCIAL HIGHLIGHTS
CONTINUOUS PROGRESS IN DEBT REDUCTION WITH LONGER AVERAGE MATURITY
Declining interest costs on the back of rate cuts and lower debt balance
Total Debt and Short-term Debt Trending Down | Net Debt Stabilized With Slight Increase Due to Perp | |
Buyback | ||
(HK$b) | (HK$b) | |
Total Debt (1) | Perp | 0.9 | |
buyback | |||
HK$5.1B | |||
Of which, Short Term Debt | |||
HK$9.4B | 123.7 | 124.6 | |
157.9 | |||
151.6 | |||
146.5 | |||
Jun-24 | Dec-24 |
41.6
62.0
110.0
95.9
Dec 23 | Jun 24 | |
Long-term debt | ||
- Over 1HFY25
- Before capitalization of interest
32.2
114.3
Dec-24
Short-term debt
Declining Financing Cost (2)
5.0% | 4.9% | 4.7% | |
3.9% | |||
FY23 | FY24 | 1H24 | 1H25 |
7
FINANCIAL HIGHLIGHTS
CONTINUE TO FOCUS ON DELEVERAGING
Net gearing ratio(1)
(1.3%)(0.6%)
56.3%55.7%
57.5%
55.0%
Adjusted for | Adjusted for perp buyback |
DP impairments and IP FV
changes
(0.2%) (2.1%)
55.5%
Adjusted for
RMB depreciation
Jun-24 | Dec-24 | Adjustments | |||||||
Actual figure | Impact of DP | Impact of perp | Impact of RMB | ||||||
impairments and IP FV | buyback on net | depreciation | |||||||
changes on net gearing | gearing | on net gearing |
1. Net gearing ratio = Net debt divided by total equity
8
SECTION TWO
PROACTIVE FINANCIAL MANAGEMENT
PROACTIVE FINANCIAL MANAGEMENT
SEVEN MEASURES TO REDUCE INDEBTEDNESS
BUSINESS | FINANCIAL | |||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | ||
RESILIENT DP | NCD | FARMLAND | IP STRONG AND | CAPEX & OPEX | TEMPORARY | TREASURY | ||
MOMENTUM | cvcvccvcvcvcv | OPPORTUNITIES | GROWING | OPTIMIZATION | DIVIDEND HALT | MANAGEMENT | ||
On the back of | Progress to | Progress to unlock | Increasing | Significantly lower | Improve financial | Ongoing | ||
premium brands | accelerate | value | recurring profits] | in 1HFY25 | flexibility | refinancing | ||
deleveraging | discussions | |||||||
8 | 13 | |||||||
FY24A | FY25E |
- CAPEX - 35%YoY
- G&A - 9%YoY
10